Law: Income Tax Act, 1922

Section: 66,4,12(1),19

Business Profits Tax Act, 1947 (XXI of 1947) Sections 4, 12(1), 19 Assessment Limitation-Chargeable Accounting Period ending on 31-3-1958-Notice issued on 23-12-1964 and assessment made on 28-12-1964 under Section34(2B), (2D) of the Income Tax Act, read with Section 19 of the Business Profits Tax Act-Whether within the period of limitation-Held no Section 34(2B), (2D) of the Income Tax Act whether applicable to the assessment under the Business Profits Tax Act-Held no (Page 189) A. Case referred to :- Kohinoor Textile Mills Ltd. v. Commissioner of Income Tax (1974) P.T.D. 239 ; (1974) 30 Taxation 138 (S.C.). JUDGMENT (The judgment of the Court was delivered by I. MAHMUD, I,] This is a reference by the Income Tax Appellate Tribunal (Karachi Bench) Karachi, under Section 19(1) of the Business Profits Tax Act, 1947 read with Section 66(4) of the Income Tax Act, 1922, at the instance of me Commissioner of Income Tax (East), Karachi, whereby two questions of law said to arise from the Tribunals order dated 30-11-66 have been referred for decision by the High Court. The reference arises in the following circumstances: 2. The Business Profits Tax Act, 1947 (Act XXI of 1947) applied to the profits of the business of the respondent-Company, Messrs Muhammad Ebrahim & Co., (1948) Ltd. Karachi. Under the charging Section 4 of the said Act, a business profits tax at 16-2/3% was liable to be charged, levied and paid on the amount of the taxable profits during any chargeable accounting period. The chargeable accounting period of the respondent was the period of 9 months ending on 31st March 1958. The Business Profits Tax Officer issued a notice on 25-3-63 to the respondent under Section ll of the said Act requiring the respondent to tile a return within 50 days, but before the expiry of the notice period, he framed an assessment on 30-3-63 and levied business profits tax of Rs, 28,757 on the proportionate taxable profits. On appeal by the respondent, the Income Tax Appellate Tribunal (hereinafter referred to as the Appellate Tribunal) by its order dated 24-9-64 set aside the assessment as invalid on the ground that it was premature as it was made before the due date had…

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